ITC likely to work out deal with MP farmers' company

After a long, futile wait for the government's support, a poor farmers' company in Guna has offered its products to ITC.

The company, called Neshkala Crop Producer Company Private Ltd, formed in 2006 under a World Bank-assisted District Poverty Initiative Project (DPIP), has offered 200 tonnes of coriander to ITC.

The coriander rates are Rs 2,500-2,600 per quintal. Guna produces 44,000 tonnes (last year's figures) of coriander.

"A study team of ITC is coming tomorrow to gauge the potential and finalise the deal. We want ITC to enter into a hedging deal also," said Gagan Saxena, monitoring coordinator of the DPIP in Guna.

The town and its periphery had been declared "agri export zone" five years ago in coriander but nothing has been done so far.

"ITC under its Sunhara Kal project is likely to procure 200 tonnes of coriander during the season, if the deal materialises. The company has said it is ready to bear the operational cost incurred in loading, unloading, weighing etc. In addition, they will also pay one per cent more than what Khumbhraj Mandi pays to farmers on overall volume," said Saxena adding, "talks will take shape at the end of this month."

A number of exporting agents in Kumbhraj, Binaganj and Bamori area of the district supply coriander to exporters in Mumbai who dispatch Guna coriander to various countries.

"Farmers don't get the direct benefit since no one knows who are the real exporters," an official from the district horticulture department told Business Standard.

The state government still does not have big plans. "We need fund from the Centre for making the agri-export zone profitable, after creating infrastructure for private partners who can help us developing the zone. We have roped in IL&FS for preparing a report to be presented to the central government for necessary fund."

At present, Neshkala supplies Kumbhraj variety of coriander to 'Vindhya Valley' brand owned by the Madhya Pradesh Khadi Graodyog Board. "They have supplied 40 quintals of coriander to Vindhya Valley," Anil Pawar, district project manager, DPIP, said.

The farmer members of the company have also sown breeder and foundation seed of wheat on 300 hectares and are expecting to sell the surplus 2,560 quintals reserve stock.